Budget deficit
Councils are addressing growing budget deficits, driven by funding cuts and rising service costs, with some proposing significant council tax increases.
Redbridge Council is facing a forecast overspend of £8.485 million for the 2026/27 financial year, an increase of £3.061 million from the previous month's projection, a budgetary control report said in September 2026. This is partly due to pressures in temporary accommodation and a £2.000m shortfall in parking income. In September 2026, Wandsworth Council proposed a 94% council tax hike in response to a projected £215 million deficit by 2030-31, which Councillor Peter Graham attributed to government funding cuts.
Westminster City Council faces a projected budget deficit of £161 million by 2030, with an £8.2 million overspend in the 2025/26 General Fund revenue, primarily from temporary accommodation and children's social care, a Cabinet meeting heard in July 2026. Councils attribute these financial challenges to significant reductions in government funding and rising service demands.
The topic of budget deficits, where planned expenditure exceeds expected revenue, has led to discussions about financial planning and service adjustments. For example, in August 2025, Newham's Odessa Infant School faced potential closure due to a deficit, prompting a proposal to amalgamate it with St James' Junior School, agreed to by the Corporate Director of Children and Young People.
Key facts
- Redbridge Council faces a forecast overspend of £8.485 million for the 2026/27 financial year. Source
- Wandsworth Council is proposing a 94% council tax hike. Source
- Wandsworth Council projects a £215 million budget deficit by 2030-31. Source
- Westminster City Council faces a projected budget deficit of £161 million by 2030. Source
- Westminster's General Fund revenue had an £8.2 million overspend in 2025/26. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 30 September 2026. Spotted a mistake? Email community@opencouncil.network.